QUOTE AND NEWS
Clusterstock  Jul 30  Comment 
Steve Wynn wouldn't have done that. China's stock market has been on an epic roller-coaster ride this year. After a 150% jump in a few months, stocks quickly tanked more than 30%. In its desperate efforts to stop the crash, China's...
TheStreet.com  Jul 30  Comment 
NEW YORK (TheStreet) -- Shares of Wynn Resorts Ltd  were rising, up 3.08% to $98.99 in pre-market trading Thursday, after the casino resorts operator released its latest quarterly earnings results late yesterday. For the fiscal second...
Benzinga  Jul 30  Comment 
On CNBC's Fast Money Final Trade, traders evaluated earnings results posted on Wednesday. Tim Seymour thinks that there was nothing extraordinary in SolarCity Corp (NASDAQ: SCTY) earnings and he gave the company a "B" for its performance in...
Wall Street Journal  Jul 30  Comment 
Wynn Resorts Ltd. remains bullish on Macau, the world’s gambling capital, despite gambling revenue in China’s semiautonomous territory being on a downward spiral for the past 13 months.
newratings.com  Jul 29  Comment 
LAS VEGAS (dpa-AFX) - Casino operator Wynn Resorts Ltd (WYNN) on Wednesday reported second-quarter net earnings of $56.5 million or $0.56 per share compared with $203.9 million or $2.00 per share last year. Excluding items, adjusted earnings for...
TheStreet.com  Jul 29  Comment 
NEW YORK (TheStreet) -- Wynn Resorts  stock is tumbling by 1.61% to $94.43 in Wednesday's after-hours trading after the company reported fiscal 2015 second quarter earnings results that missed analysts' estimates. For the latest quarter, the...
SeekingAlpha  Jul 29  Comment 
Benzinga  Jul 28  Comment 
Benzinga spoke with TD Ameritrade Chief Strategist JJ Kinahan on Tuesday. He discussed options activity ahead of earnings in Gilead Sciences, Inc. (NASDAQ: GILD) and Wynn Resorts, Limited (NASDAQ: WYNN), which are reporting financial results...




 

Wynn Resorts, Limited (NASDAQ: WYNN) develops and operates luxury casino resorts. The company serves Las Vegas, Nevada and Macau, China. In Las Vegas, the company owns the Wynn Las Vegas and Wynn Las Vegas Encore properties while in Macau, the company owns Wynn Macau and Wynn Macau Encore.[1] All of these properties are marketed as luxury resorts[2] and, in Las Vegas, WYNN likes to position its resorts as the most expensive in the city.[3] In 2010, the company earned $4.18 billion in revenue and $316 million in net income.

Company Overview

Business Segments[4]

  • Las Vegas (31% of total revenue, 70% of assets, 57% of costs)
  • Wynn Macau (69% of total revenue, 30% of assets, 43% of costs)

Business Growth[5]

Fiscal Year ended December 31, 2010

  • Revenue increased to $4.18 billion from $3.05 billion in 2009.
  • Net income increased to $316 million from $39.1 million in 2009.

Trends and Forces

Wynn has big exposure to the Macau gaming market

Due to the company's big investments in Macau, the company is both receptive of booms in the emerging markets and susceptible to the busts.The Macau gaming market is largely dependent on the Chinese market and economy. If the market worsens as it had in the 2008-2010 recession, Wynn Resorts could see its bottom line affected accordingly.

Wynn insists on keeping full-time staff employed

During downturns, Wynn's plan is to preserve employment includes pay cuts, reduced work weeks for its employees and suspend 401(k) matching. CEO Steve Wynn believes that eliminating job security worries amongst its employees is paramount to maintaining strong human capital, a driver of the consumer's experience at any Wynn casinos.[6]

Government Regulation and Gaming Laws

Macao's gaming laws and gaming taxes are relatively young and have few precedents, making them quite vulnerable to sudden change. China has a large and affluent middle class, but for many years travel and currency restrictions made it difficult and undesirable for visitors to come to Macao. While the Chinese government relaxed many of these restrictions when it first granted gaming licenses and ended its state-run gaming monopoly, there is no sign that this deregulation trend will continue.[7]

Competition

Wynn Resorts faces intense competition in both Las Vegas and Macau. The company’s primary competitors include Las Vegas Sands and MGM Mirage, both of which operate in the Las Vegas and Macau markets. Wynn Resorts also faces competition from privately-held Harrah’s Entertainment, Boyd Gaming, and Native American casinos.

  • Las Vegas Sands: Like Wynn, LVS has properties in Las Vegas, Macau, Bethlehem in Pennsylvania and Singapore.[8]
  • MGM Mirage: Operates casino resorts, golf courses, and golf clubs in the United States. MGM has a strategic alliance with the Mashantucket Pequot Tribal Nation, owner of Foxwoods Casino Resort in Ledyard, Connecticut.
  • Boyd Gaming: Owns and operates casinos in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey in addition to pari-mutuel jai alai facility in Florida, two travel agencies, and an insurance company.
  • Harrah's Entertainment: A gaming company that owns and operates under the Harrah's, Caesars and Horseshoe brand names.[9] It also owns the London Clubs International family of casinos and the World Series of Poker.

References

  1. Wikinvest SEC Filings: 2010 10-K WYNN, Page 3
  2. John Dobosz (February 26, 2009). Going All In For Wynn. Forbes.
  3. Oskar Garcia (February 20, 2009). Wynn Resorts to post 4Q earnings on Tuesday. Forbes.
  4. Wikinvest SEC Files: 2010 10-K WYNN, Page 102-103
  5. Wikinvest SEC Files: 2010 10-K WYNN, Item 6: Selected Financial Data
  6. Wynn Resorts Ltd. Q3 2008 Earnings Call Transcript. Seeking Alpha (October 30, 2008).
  7. MacauCasinoWorld.com: History.
  8. Wikinvest: Las Vegas Sands
  9. Corporate Profile. Harrah's Entertainment.


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